• Berkshire Hathaway to invest more in banks if Fed plan adopted, Buffett says
    06 May 2019
    Berkshire Hathaway Chief Executive Warren Buffett said the conglomerate will likely increase its stake in Wells Fargo and other banks if the US Federal Reserve finalizes a proposal to ease a current restriction on bank investors.

    “It’s been a deterrent,” he said at the company’s annual meeting in Omaha, Nebraska, on Saturday. “It’ll be less of a deterrent in the future.”

    The Fed plan, issued for comment last month, would let investors own a higher percentage of a bank’s shares without being designated a bank holding company subject to stricter oversight. The threshold is now 10 percent on a case-by-case basis.

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  • SEC's Clayton says companies should tell investors how employees are being managed
    03 May 2019
    US public companies should give investors more information about how they attract, train, and keep employees, US Securities and Exchange Commission Chairman Jay Clayton said, while stopping short of endorsing a federal disclosure requirement.

    “If I’m an investor looking at businesses today, I want to know what you’re doing with your human talent — how you’re growing your human talent, how you’re accessing new talent, how you’re retaining existing talent,” he said at a Washington conference* yesterday. “I’d like to see companies engage with investors around this.”

    But Clayton expressed wariness about requiring across-the-board disclosure measures for companies.

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  • Many OTC swaps traders shouldn’t have to prepare for upcoming margin standards, CFTC chief says
    02 May 2019
    The US Federal Reserve and the US Commodity Futures Trading Commission should find that hedge funds and banks with little derivatives activity need not prepare their systems for uncleared-swaps margin standards next year, CFTC Chairman Christopher Giancarlo said.

    In a letter to Fed Vice Chairman Randal Quarles, he said that as the planned rule stands, many small traders will have to get models ready for documentation, custodial and operational requirements even though they won’t be providing enough margin to be subject to the standards.

    “They will soon be required to incur the time and expense of preparing to exchange initial margin even though they will not be required to exchange margin,” Giancarlo’s letter today said.

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  • Derivative-dealer capital requirements likely to come from SEC by summer
    02 May 2019
    The US Securities and Exchange Commission is likely to finalize capital, margin and segregation rules for security-based derivative dealers this summer, said Christopher Giancarlo, head of the US Commodity Futures Trading Commission.

    “You’ll see action on that with any bit of luck even before I leave the commission, but certainly sometime this summer I would imagine those will be finalized,” he told the House Agriculture Committee's subcommittee on commodity exchanges yesterday.

    The CFTC has been coordinating with the SEC to help harmonize its plan with existing rules at the commodity regulator. Industry groups have pressed the securities overseer to ensure its final rules are consistent with those at the CFTC.

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  • Derivative clearinghouse stress-testing to expand as two facilities pass latest tests
    01 May 2019
    The US Commodity Futures Trading Commission plans to expand stress-testing of derivative clearinghouses, Chairman J. Christopher Giancarlo said, as new tests showed two major clearinghouses could cover losses from economic jolts.

    “The commission expects to grow our stress testing program to help ensure that the clearing eco-system continues to be resilient to absorb both market and systemic shocks,” Giancarlo told a House Agriculture Committee panel on commodity exchanges today.

    The CFTC today released the results of stress tests it conducted last year on Chicago-based CME Group and London Stock Exchange Group-owned LCH Ltd.

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